How to Fix Your Credit Cards

If you are asking how to do credit repair credit cards, I am probably safe in assuming that you have had credit problems in the past.  Once you have messed up your financial records it can be difficult to obtain new borrowings. You can get caught in a catch 22 situation i.e. you need to prove that you are now financially reliable and will repay your debts but you can't do this if nobody will lend you any money.

So what is the answer?  You could obtain a credit card aimed at those of us who have been late payers or had other financial difficulties.  There are companies who have realized that people will pay over the odds to obtain borrowing in an attempt to prove themselves.  Yes, you must realize that these financial companies are not helping us out of charity.  They know that they are taking a chance and they charge high interest rates to offset this risk.

So is it necessary to take out a new card in order to repair your credit?  Well the answer depends to a large extent on your personal circumstances.  Why have you got a poor financial record?  Have you checked your report to make sure that the information it contains is true?  If not, this is the first place you should start. If you find mistakes, and they often happen, contact the relevant companies and have them rectified. Make sure this is done as it will help to increase your overall score.

Once you have sorted out any mistakes, you now need to look at the credit facilities you have available.  It is estimated that your credit score improves if you have borrowings at less than 50% of available credit. So be wary of closing accounts if you are going to adversely affect this ratio. But if you can close smaller accounts then do so. Have the financial institution mark them as closed by consumer to give you the biggest benefit.

If you have no existing credit facilities due to bankruptcy or other financial situations then you need to start building a good history as soon as possible. One way to do this is to use a secured credit card provider.   You will have to open an account and deposit an amount of money equivalent to the limit you are looking for.  Then you are free to charge things against this card until you reach this agreed limit.  All of these types of facilities have annual fees which can vary considerably so it pays to shop around. Before deciding on your provider, you will need to check if they report to the credit bureaus. If they don't then getting the facility is a waste of time.  You also need to check if they require any compulsory insurance which can be expensive.

If you manage your account properly i.e. clear the balance in full every month, you will slowly improve your financial records and thereby answer your question of how to do credit repair credit cards.